Bank Millennium S.A.

28 December, 2022

Current Report no. 29/2022

SUBJECT: Decision of Polish Financial Supervision Authority onadditional own funds requirement

The Management Board of Bank Millennium S.A. (_quot;the Bank_quot;), herebyreports that on 28 of December 2022, it received from the PolishFinancial Supervision Authority ("PFSA") a decision regarding additionalown funds to secure risk resulting from FX mortgage for households loanportfolio ("P2R buffer"). The new requirement for the Bank at solo basiswas set at the level of 1.95 percentage points above the value of totalcapital ratio defined in the art. 92.1.c of regulation (EU) No 575/2013of the European parliament and of the Council of 26 June 2013 onprudential requirements for credit institutions and investments firmsand amending Regulation (EU) No 648/2012 (Official Journal of the EU L176 as of 27 June 2013 r., as amended - further referred as to"regulation No 575/2013"). The P2R buffer should consist of at least 75%of Tier I capital (which corresponds to 1.47 percentage points above thevalue of Tier I capital defined in art.92.1.b of regulation No 575/2013)and at least 56.25% of core Tier I capital (which corresponds to 1.10percentage points above the value of core Tier I capital defined inart.92.1.a of regulation No 575/2013). The decision was taken based onarticle 138 sec. 2 point 2 of the Banking Act.

The new level of P2R buffer at the TCR level is 87 basis points lowercompared to the level communicated on October 30, 2021.

Separately, the Management Board of the Bank received a recommendationfrom the PFSA to limit the risk occurring in the Bank's operations bymaintaining own funds to cover the additional capital add-on in order toabsorb potential losses resulting from the occurrence of stressconditions under Pillar II ("P2G add-on"). At the solo level the P2Gadd-on was set at 1.72 percentage points, while at the consolidatedlevel at 1.75 percentage points. on the top of total capital ratio asdescribed in the article 92 item 1 letter c of the regulation (EU) No.575/2013 of the European Parliament and of the Council on prudentialrequirements for credit institutions and amending regulation (EU) No648/2012, increased by the additional own funds requirement referred toin Article 138(2)(2) of the Banking Act and by the combined bufferrequirement referred to in Article 55(4) of the Act on macro prudentialsupervision.

The additional capital requirement should be made up of Common EquityTier 1 capital only.Legal base: Art. 17.1 of MAR

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